New Delhi, Dec. 6 -- The Reserve Bank of India's latest move to cut the repo rate by 25 basis points to 5.25 per cent reflects a clear commitment to support growth at a time when inflation is easing sharply and global uncertainties are rising, SBI said in its Ecowrap report.
The Monetary Policy Committee (MPC) voted unanimously for the cut and maintained a neutral stance.
SBI Research notes that the decision is unusual in the global context because central banks rarely reduce rates when growth is strong and inflation is extremely low. India currently has GDP growth above 8.2 per cent and inflation at just 0.25 per cent.
The RBI's sharp downward revision in inflation projections is a key reason behind the policy move. Supported by better ...